In an earlier paper the author derived a recursion formula which permits the exact computation of the aggregate claims distribution in the individual life model. To save computing time he also proposed an approximative procedure based on the exact recursion.

In the present contribution the exact recursion formula and the related approximations are generalized to the individual risk theory model with arbitrary positive claims. Error bounds for the approximations are given and it is shown that they are smaller than those of the Kornya-type approximations.

A recursive expression is derived for computing exactly the distribution of aggregate claims of a portfolio of life insurance policies. The recursion generalizes a formula of White and Greville for the claim numbers distribution and improves Kornya's approximation method for the aggregate claims distribution. It can be seen as the counterpart in the individual model of Panjer's recursion formula for the collective model.

The busy-period distributions of M/G/1/K queues with state-dependent arrival rates are considered. Two recursion formulas for the Laplace–Stieltjes transforms of the busy periods under the FCFS and preempt resume LCFS service disciplines are obtained. It is shown that the busy-period distributions for the two service disciplines are, in general, different, in contrast to the fact that they coincide for ordinary M/G/1 queues. For deterministic service times and arrival rates non-increasing in the number of customers in the system, stochastic ordering between these two busy periods is also established.